Goldman Calls Deckers (DECK) a Sell Due to Unfavorable Risk Reward Profile

Deckers Outdoor Corp. (NYSE:DECK) tops the list of the most oversold S&P 500 stocks so far in 2025, with its share price having declined by 50%.

This sharp decline in the share price has prompted some analysts to be cautious. On July 1, Goldman Sachs analyst Brooke Roach initiated coverage of Deckers Outdoor with a Sell rating and a $90 price target. While acknowledging the strength of Deckers’ brand portfolio, Roach takes a more cautious stance in the near term, citing a less favourable risk/reward profile compared to other names in the apparel and accessories space.

A customer browsing a retail store, finding the perfect footwear for their casual outfits.

The analyst points to increasing competition, especially in the running category, and early signs that brand momentum may be starting to normalize after years of strong growth. Although Deckers has executed well and gained market share through its portfolio of sportswear and footwear products, Roach believes the broader environment is becoming more challenging.

In her view, even continued strong execution may not be enough to offset rising competition and evolving consumer preferences. These factors, she argues, create a more subdued outlook for the industry in the short term.

On the other side, UBS analyst Jay Sole had reiterated a Buy rating on Deckers in early June, maintaining his $169 price target. Please read our update on this UBS report, which was published as part of our list of the 11 best debt-free stocks to invest in right now.

Deckers Outdoors Corp. (NYSE:DECK) designs, markets, and distributes innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities.

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Disclosure: None. This article is originally published at Insider Monkey.